I've always been good at saving money, but what to do to make it make me money?

[Harleystoo]

Nobody has mentioned lead. Buy lead. "A commodity in the hand is worth two in the bush." The market is forecasted to crash again; and worse. Silver was previously mentioned; its tangible.
Also previously mentioned: diversify.

 

[nsl]

IF.. you draw a wage from a company that has a 401K, like I did...
The company would match the first 5% of my wage.. 100%!
The 401K was with Fidelity and my account was placed in a very low risk fund. Sure.. it only made 1%-2% return a year...
BUT.. I placed $5,000 a year into the 401K.. AND they placed $5,000 match also! My friend.. that's a 100% return per year!

Then when I retired, I rolled over the 401K into my IRA!

I started doing this a few years ago.
I think my company matches 3 or 4 %.
Anyway, I'm just putting in the minimum, should I put in more?

 

[feralmerril]

Heck yes! You are turning down free money if you dont max out what the company matchs.

 

[redneckemt]

I ve invested alittle this year. Dividend funds Coke, GE, At&t and a few others. I m 28 years old I got time to wait, and let the dividends add up.
Invested a couple hundred dollars getting my wife started selling Origami Owl Jewelry (pm if anybody needs to buy their wife a gift) nice little side income for us. Looking into side business for me.
But so far my best investment as been buying Smith and Wessons. Got a buddy harassing me about 34s he keeps trying to tell me I don't need a 2in and a 4in. He s also after my 5in 27-2. Got another friend who keeps offering me money for my 3in 65. The 8 3/8 27 is just sitting in the safe. I watch about twenty gun trader groups on faceboom every day. I try and buy all the S&W's that I know are underpriced.

Ive also got 6months of expenses in the bank and 1k in the safe. And a little bit of silver

 

[THE PILGRIM]

I started doing this a few years ago.
I think my company matches 3 or 4 %.
Anyway, I'm just putting in the minimum, should I put in more?

Absolutely for sure. You want to put in enough to get the max from the company.
That's free money dude! Like walking down the street and seeing a $100 bill laying on the sidewalk.
Would you think, I would pick that up, but I don't work on Sunday?
Take the company's money!

 

[1morethan8]

I started doing this a few years ago.
I think my company matches 3 or 4 %.
Anyway, I'm just putting in the minimum, should I put in more?

If you have a 401K, I would put the max that the company will match. If you also have a IRA you can put money in it also and you will be able to direct that money into other investments.
Be sure to know what investments are allowed under an IRA, it could be something that will make your money more liquid and give you more control.

You will not be taxed for the money going into an IRA or 401K unless you draw it out, this will not have income tax taken out of your check for your contribution, this will lower the amount of income tax you'll pay at yearly tax time.

You do know you can borrow money from a 401K account if needed, as long as you pay it back you will not be taxed.

Read up on the latest rules on a 401K and IRA.. you can also transfer money from a 401K into an IRA. I would do this every couple of years because other than the company match the money wasn't making much in the 401K.

 

[johngalt]

Interest rates are so low now, I would stay FAR away from bonds. When the interest rate goes up, and it will eventually, the value of those low yield bonds will tank.

If I could do it over, I would put the minimum to get the company match in the 401k instead of the max. Gains from stocks invested myself will be taxed at a more favorable capital gains rate. Contributing to a 401k means that you are delaying taxes now (when they are low) until the future (when they will be much higher). Future withdrawals will be taxed at the full ordinary income rate.

If you can, do a Roth 401k instead of a regular 401k. With the Roth, contributions are after tax but the earnings are tax free. In the long run, the value due to earnings will far exceed the contributions.

 

[M3Stuart]

One of my degrees is in Finance. You've got a lot of material to learn. Just get started. You'll be fine.

I recommend real estate and the S&P 500 index. I do not, and would not, own ANY bonds right now. But that's all a function of age, risk tolerance, etc. Your mileage WILL vary. (FYI: I would also be short, that's selling and not buying, precious metals like gold, silver, and all that - they can mine/extract all they want for $300 an ounce. Once the hype dies down, it'll drop like a rock.)

 

[BigBill]

Give a investment broker a call like Fedelity?

I been in there 401k program for almost 40 years now.
My company had there plan at the corporate level. I was a blue collar worker who worked for corporate headquarters.

It was explained to me for my 8 year investment of 10% of my pay they would give me at the end of eight years $80k. I put n 16% of my pay to kick it up a notch. The company matched up to 3%. So I put a total of 19% of my salary in it. At the end of each year they were paying around 10% interest on my money. My money snowballed like a freight train.

Invest your money wisely and let it work for you. Keep some on hand for emergency situations and invest the rest.

I got lucky I listened to the old timers I worked with.

I borrowed against my money to purchase land in Vermont. I paid myself 7 1/2% interest rather than pay a bank.

 

[blujax01]

I don't ask my guy at UBS to give me advice on guns...

 

[Kinman]

Very few people want to spend the time it takes to properly invest their hard earned money. That being said its hard for most of us to trust someone else to make our money work for us. I agree with a previous poster that mentioned interviewing potential investment councelors, maybe you have a friend that knows of someone, alot of people hear from someone else about a decent investor. Thats how my wife found a couple of people we have used over the years, it usually takes years before you find someone is worth investing your hard earned money with. You can go through brokers and you must be ready to expect that they have their fees, I have no problem paying someone to manage my accounts. The people you want to steer away from are those that want to constantly move your money around because everytime they touch it they are making money. I have one guy that is crazy about penny stocks...25cents a share stuff, its really cool when you get into one of those little babies for a quarter a share and after a couple of years its worth 8 bucks a share, I don't mind paying taxes either, why complain about something when your successful.

 

[S&W SS Revolvers]

Dave Ramsey my friend. Dave Ramsey. Follow him on his radio show , read the Total Money Makeover , study , learn and like he says only invest in what you are comfortable with.

The guy has it nailed; in 401K's , Traditional and/orROTH IRA's etc.
25% Growth , 25% Growth & Income , 25% Aggressive Growth , 25% International.

It is YOUR money , read , study , invest. Mostly keep it simple. One member here said the market is at the top...he is correct INDEED. We have cash sitting off to the side , waiting for the imminent plunge...then we'll inject the cash.

With that said 99.9% of us cannot , nor should not try to "time" the market. My only personal suggestion is: If you cannot sleep at night , move strategically. I have been at investing for 30+ years and self education is the very best for you sir IMO.

Happy New Year 2015 and Many Blessings with Freedom to All...Amen

 

[THE PILGRIM]

Dave Ramsey sounds pretty aggressive! His advice may be okay for you younger guys,
Us older guys have pulled way back on the aggressive growth and international.
And I do recommend bonds. Short term Actual bonds, not bond funds.
I like NM Municipals. I also like the principal only bonds like strips.
They don't pay an interest, but I don't want any. That's taxable.
Your profit is all cap gains at the end.
But if you are starting now, open an online acct with one of the usual suspects.
You want an acct with low, low fees. Free is good.
Then slowly feed in your money. I like the Exchange Trades Funds of broad indexes. Like the S&P 500.
The market is at an all time high.
I expect a drop when the interest rates start to rise.
When the market goes down, that's a buying opportunity for the folks with cash.